Final Exam BUS 458 Fall 2020

1. The primary goal of a business firm is to _________________. A. promote fairness. B. make a quality product. C. promote workforce job satisfaction. D. maximize profit. 2. John fishes for a living. Last year, he sold $100,000 of fish. Bait, nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers. Depreciation on his boat and other equipment, as calculated using IRS rules, was $15,000. What was John's profit as would be calculated by an accountant? A. $165,000 B. $100,000 C. $65,000 D. $35,000 3. The cost that a firm pays in money to hire a resource is referred to as ________ cost. A. a minimized B. a maximized C. an explicit D. an implicit 4. ________ cost is defined as a cost of production that does not entail a direct money payment. A. An explicit B. An implicit C. A total D. A fixed Chapter 11: A Firm’s Profit-Maximizing Choices 5. A perfectly competitive firm _____________. A. sells a product that has perfect substitutes. B. has a perfectly inelastic demand. C. has a perfectly elastic supply. D. There is no perfect competition. This study source was downloaded by from CourseH on :07:12 GMT -05:00